If the government legalized the purchase and sale of marijuana,the equilibrium quantity would _________ and the price would ________ if the supply of marijuana increased by _______ than the demand for marijuana increased.

Question

Quizplus · Accepted Answer

If the supply of marijuana increased more than the demand for it, the equilibrium quantity would rise because there would be more supply to meet the demand. However, the increased supply would cause the price to fall because suppliers would have to lower their prices to sell their excess supply. Therefore, choice C (rise in quantity, fall in price) is the best option.

If the Government Legalized the Purchase and Sale of Marijuana,the